Summary and conclusions

Summary

In this report, we project the future trends in illness for the population of England up to 2040. Our projections suggest an expansion in morbidity, with people spending more time in ill health. This is because life expectancy is projected to rise by 1.4 years on average between 2019 and 2040, while the age at which people are expected to be living with major illness is projected to remain unchanged at 70 years old. This would mean, on average, people living additional years with major illness (defined as having a CMS above 1.5) rather than dying. While longer life is on the whole something to be celebrated, it also implies increased demand for health care services.

The expansion in morbidity combined with the change in the size and age structure of the population means that we project an increase of 2.5 million people aged 20 years and older living with major illness by 2040. Most of this rise is driven by demographic changes rather than by expanding morbidity. The total projected rise in the average level of illness, as measured using the average CMS, is 24%.

We then presented projections of the 20 chronic conditions that make up the CMS. We project an increase in prevalence of 19 of the 20 conditions, with the exception of coronary heart disease. In most cases, the increases are driven largely by population ageing rather than a rise in age-specific rates or earlier onset.

The remainder of this section examines some of the implications of our findings, first for the health care system and then for the wider economy and society.

Implications for the health care system

How should the health care system in England respond to the projected increase in morbidity? We briefly discuss some of the options.

A focus on prevention

Prevalence

Primary prevention through reducing the risk factors associated with ill health, such as stopping smoking and maintaining a healthy weight, will delay the onset of many health conditions. It may also make these conditions easier to treat, allowing people to have a better quality of life and live longer, even if they do develop illness. Overall, while some people value some health states as worse than being dead,, this is likely to increase wellbeing. Prevention is therefore key to ensuring that people enjoy the longest and best quality of life possible.

Whether primary prevention results in a compression in morbidity, ie people spend less time in ill health across their lives, is more uncertain. For this to be the case, prevention would need to reduce incidence, or the flow of people into illness, by more than it reduces mortality rates. While this is possible, it is not a given – as new pharmaceuticals and improvements in medical technology are designed to minimise the impact of illness and keep people with ill health alive.

Costs

The implications of primary prevention for health care spending depend both on the impact on the prevalence of ill health and the costs of treating those who develop conditions. There is a large amount of evidence that prevention is hugely cost-effective, offering large increases in length and quality of life for relatively little financial or other investment.,

However, the cost-effectiveness of prevention does not amount to it being cost saving. It may be that a reduction in risk factors does not reduce prevalence because it boosts survival as well as delays onset, but that the costs of treating people are lower because they are healthier. Any reduction on in-year costs would be weighed against a longer life expectancy, which will tend to increase costs over the longer term.

In summary, there are many important reasons to invest in primary prevention. It will almost certainly increase individual and societal wellbeing by increasing life expectancy and quality of life. It may also have beneficial impacts through greater independence and an increased ability to engage in the labour market and care for loved ones that have care needs. The impact of prevention on overall levels of illness and the costs of caring for the population is less clear.

The use of technology and pharmaceuticals

Technological innovation in health care can take several forms ranging from: new drugs, new diagnostic and monitoring equipment, the use of data to streamline models of care and the science of genomics that allows for the development of personalised medicine. These changes can improve prevention and early diagnosis, as well as help patients live better with their illness. However, it is hard to know in advance how this kind of progress will affect these projections.

Prevalence

Technology could affect the future level of illness in two ways. The first is to affect prevalence or the number of people with an illness. Improved diagnostics may mean earlier diagnosis, thus increasing numbers but also making conditions more manageable and (where possible) remission more likely. Over time this could reduce the adverse effects or even prevalence of illness and multimorbidity. Technology can also keep people alive for longer when they are diagnosed with a condition. This will tend to increase prevalence.

The second potential impact of technology is to reduce the effect that diagnosed conditions have on people’s lives. In the context of our research, this means that technology could reduce the weight of the CMS assigned to a particular illness. Although not included in our list of conditions, the most relevant example is HIV/AIDS, which had a very big impact on survival and quality of life in the 1980s and early 1990s but is now a condition people are able to live with for decades. Our analysis assumes that the impact conditions have on people’s lives and health care use remains the same until 2040. We are therefore basing levels of major illness on the 2019 CMS. It may however be that improvements in the treatment of some of our 20 conditions over the next two decades mean the CMS could fall. This means that there may be lower levels of major illness than we project.

Costs

The impact of technological development on costs varies. Some technologies are purely cost saving, allowing the health care system to deliver the same or a similar service at a reduced cost, although these can be few and far between. Instead, many new technologies will offer improved outcomes or treatment experience (for example, reduced side effects). The National Institute for Health and Care Excellence (NICE) evaluates whether these treatments offer a sufficient gain in quality-adjusted life years (QALYs) to justify the expenditure. Improved treatments often come with a higher cost per patient, which has been a driver of health care spending throughout the world. Others may have a lower cost per patient per year, but if the treatment extends life, then the total cost of treating that patient over the course of their life might increase.

It is not possible to give a definitive answer on how future technology will affect costs. However, in 2019 the Topol review concluded that new digital technologies are more likely to improve outcomes and experience rather than save labour. Given the projected demographic shift, technology that can improve labour productivity will be ever more important.

The increase in the levels of illness we project highlights the importance of adopting and spreading technologies that make health services more efficient at delivering current forms of care. New technologies that improve care for patients are to be welcomed. Where these are not cost neutral, it will be important to approve those that offer the greatest value to patients relative to their costs.

Additional spending

Most of the projected increase in levels of major illness by 2040 is the result of changes in the size and age structure of the population. There is therefore a limit to how much improvements in population-level risk factors and effective use of new technologies can contain the costs of meeting increased demand for health care. England, in keeping with all other developed countries, therefore faces a choice between spending more and reducing the quality or scope of what health care services are offered.

Good health is a national asset, with positive implications for quality of life as well as GDP and other measures of societal wellbeing: people place high value on their health and that of their loved ones. Over time, given population ageing and projected economic growth, an overall increase in spending to meet increased health care demand is inevitable. The crucial question is how this is to be funded.

Most European countries, including the UK, offer some form of universal health care system. This is typically either through a social insurance or a taxpayer-funded system such as our own. If these universal systems are not given sufficient funding to meet demand, then it is likely to increase demand for additional or private services. There will still be an overall increase in spending, as people pay out of pocket or for private insurance. However, this would only benefit sections of the population who could afford it. Given our projections of future levels of ill health, the choice is not whether or not more money is spent but how it is spent and who will benefit.

Maintaining universal health care systems in the future will almost certainly mean additional spending. To retain public support, these systems will have to demonstrate that they are making the most effective use of the resources they are given. This again points towards having an effective prevention strategy and using new technology in the most efficient way.

Implications beyond health care

Our results have implications that extend beyond the health care system. Here, we briefly discuss these for other public services, the welfare system and the wider economy. Each area deserves more attention than we can give them in this report, so we will return to explore these themes in future publications.

Other public services

There are direct implications of our projections for social care for older adults. In our 2021 insight report, we showed that the rate of social care need by age has fallen over the past decade while the number of diagnosed conditions has risen. This indicates that people are now able to live independent lives for longer after such a diagnosis. The projections in this report suggest that this trend may continue. The age at which people are expected to be living with major illness is projected to stay the same, while levels of multimorbidity and life expectancy are projected to rise. Therefore, when people do require social care in older age, they will typically have more complex health care needs.

The projections highlight the scale and impact of population change and the baby boomers reaching retirement age. The potential impact on social care can be seen if we focus on the example of dementia, which tends to increase the odds of social care use. The population standardised prevalence of dementia is forecast to fall, consistent with international evidence that age of onset has on average increased. However, as the probability of individuals developing dementia increases with age, the large increase in the number of older people means a rise in the total number of people living with dementia.

The projections also have implications for wider public services, such as social housing and community services.

The welfare system

The growth in the number of older people will increase those who qualify for age-related benefits. The largest of these is the state pension. There are also benefits, such as attendance allowance, where eligibility does not depend on age but receipt is heavily age related. Under the current system, our projections indicate that people would be eligible for these health-related benefits for a longer period of time.

Labour supply and the wider economy

On average, we project that years of additional life expectancy will all be spent with major illness. This has important implications for the extent to which the retirement age can be increased, as major illness is likely to reduce a person’s ability to work. A consultation by the UK government to increase the state pension age to 68 years has recently been paused. There are important inequalities in both illness onset and life expectancy, which make such increases problematic and which will be discussed in a subsequent report. However, even on average, there could be a limit to the extent to which retirement can be delayed much more.

Most of our projected increase in major illness is for those aged 70 years and older, but we still see a projected increase of around 500,000 in the total number of working age people diagnosed with major illness, whose ability to remain economically active may be more limited. It is however important to note that there are and will be some people who do not have major illness and are unable to work, and those who have major illness yet are employed. The relationship between work and health is complex and will require a range of solutions from both the government and employers to ensure those of working age are supported to stay in work if they are able.

In addition to being able to recruit enough health care workers, a major issue for the government will be our ability to pay for the growth in care. Strong economic growth improves the government’s budget for all public services. Fostering a vibrant, healthy, working age population would serve both these purposes. This has implications for migration policy given the shrinking labour market from the domestic working age population.

Looking to the future

The findings of this report provide sobering reading: there is a large projected increase in levels of ill health to 2040 primarily driven by an older population, and this is likely to be expensive. However, these changes are also a testament to progress and a source of optimism. There have been large improvements in life expectancy over the past 100 years, driven by improved living standards, public health interventions and advances in medical technology.

Over the next 20 years, we project on average that additional years of life will all be spent with major health conditions rather than people dying earlier. The purpose of the NHS, other public services and the wider welfare system is not to save money. It is to benefit the lives of the population, while trying to make the most efficient use of available resources. The projections we present in this report highlight the importance of a cross-government, long-term strategy to ensure our society and economy are set up to meet the needs of our changing population.


¶¶¶¶¶¶ Health care financing decisions for treatment are based on quality-adjusted life years (QALY). QALYs is a system that gives a weight to quality of life based on levels of illness. It runs from 0 to 1, with 0 meaning death and 1 meaning full health. Therefore, in our current system, any stage of illness is assumed on average to be preferable to, or at least as good as, death.

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